Fertiliser costs continuing to add to squeeze for farmers

Fertiliser affordability remains a concern for the Tasmanian agricultural industry while availability is less of an issue.

The latest Rabobank semi-annual fertiliser outlook report showed that while supply has improved, high prices and uncertain seasonal conditions are likely to continue weighing on fertiliser demand through to 2027.

Rabobank senior analyst Vitor Pistoia said farm profitability pressures and weather uncertainty are constraining demand worldwide.

“The Australian fertiliser market has shifted from a period of acute supply concerns towards a more balanced supply situation,” Mr Pistoia said. 

“However, affordability remains a significant challenge, with fertiliser prices having risen much faster than key agricultural commodity prices.”

Mr Pistoia said local urea prices reached A$1500 per tonne at the height of the US and Israel’s war in the Middle East, almost doubling from lows recorded earlier in the year.

“Despite this, Australia imported 2.92 million tonnes of urea since November 2025, only about 15 per cent below recent averages, indicating supply shortages have been largely avoided.”

Bracknell dairy farmer Grant Archer said he was not having issues with fertiliser availability, but the cost was extreme.

“It is more than 50 per cent higher than previous years, especially nitrogen,” Mr Archer said.

“It’s affecting our bottom line, for sure.”

Mr Archer said earlier this year he was having trouble getting fertilisers.

“We can get everything now, but it’s affecting our bottom line.

“We are trying to be as careful as possible with our fertiliser and how we use it.”

Nik Harvey, who runs Harvey’s Fertiliser Services with his sister Renee, said the farmers he had spoken to were frustrated with the fertiliser situation.

“They’ve definitely cut their volumes and rates back,” Mr Harvey said.

“They probably still cover the same amount of ground but just put on less because they’re trying to save money.

Mr Harvey said their services cost more.

“Our costs have gone up with fuel, wages, super and insurance,” he said.

The Rabobank report said lower fertiliser demand this season reflects farmers reducing application rates, changing crop rotations and shifting towards less nitrogen-intensive production systems in response to higher costs.